The global Aerospace And Defense MRO Market size is expected to reach USD 126.9 billion by 2028, according to a new report by Grand View Research, Inc. The market is expected to expand at a CAGR of 14.0% from 2021 to 2028. AAR Corporation, SIA Engineering Company (SIAEC)Ltd., Embraer S.A, Air France KLM Group, Raytheon Technologies Corporation, Delta Air Lines Inc. are some of the key players in this industry. Steady economic growth, the prevalence of aging commercial and military aircraft fleet, and increased military spending are expected to drive the market over the forecast period..
Airlines are setting up their own maintenance, repair, & overhaul (MRO) facilities for regular maintenance checks and to increase fleet availability. Third-party MROs are collaborating with OEMs to get expertise in advanced aircraft MRO procedures and technologies. Hence, there are multiple options for airlines that represent the low to medium bargaining power of third-party MROs.
The market is highly fragmented owing to the presence of numerous local and international players with a strong financial base as a result, the entry barriers are high. In addition, OEMs and established MROs are increasingly incorporating advanced engineering techniques such as AI, IoT, real-time health monitoring, and predictive maintenance to reduce cost and enhance the end-use experience. Due to the high costs associated with these, the threat of new entrants is expected to be less.
Related Press Release@ Aerospace And Defense MRO Market Report
Aerospace And Defense MRO Market Report Highlights
- The engine MRO segment is expected to witness the fastest CAGR of 14.3% from 2021 to 2028. The growth can be attributed to strict environmental regulation, high fuel consumption by engines, and the “availability-based contracts” business model implemented by engine OEMs
- The commercial aviation MRO segment is expected to reach USD 92.1 billion by 2028, owing to the improved trade relations resulting in demand for cargo aircraft MRO and increasing low-cost carrier penetration. Growth is slow due to the imposition of international travel restrictions in a global effort to contain the spread of the Covid-19
- The market in Asia Pacific was estimated to be USD 14.5 billion in 2020, which can be attributed to rapid urbanization and strong demand for new narrow-body aircraft in emerging countries
- In North America, the military aircraft MRO market is expected to be driven by a consistent increase in the military aircraft fleet, modernization of aging aircraft, and the use of AI and ML in predictive maintenance.
- The market is competitive owing to the existence of numerous established companies, that are primarily based in Europe and North America, however, Asia Pacific is anticipated to flourish on account of the shift of MRO services from developed economies
